Rogers and Shaw Integration Drives Q2 Revenue and Profit Growth
Rogers reported strong results for the second quarter of 2023, with a significant boost from its recent integration with Shaw. The company’s mobile and wireless services saw substantial growth, contributing to a 30% increase in total overall revenue, reaching $5 billion.
Rogers’ postpaid mobile phone net additions were up by 39%, with 170,000 new subscribers joining in the second quarter. This growth in the mobile phone subscriber base, along with revenue from Shaw Mobile subscribers, led to a 7% increase in wireless service revenue.
The integration with Shaw has also proven to be a major driver of growth for Rogers. The company reported that the integration is proceeding ahead of plan, with cable service revenue up by a staggering 93% and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) up by 97%. The company also added 25,000 internet subscribers, with organic growth improving across the country.
The integration has not only increased revenues but also boosted profits. Rogers’ net income for the quarter, however, was down by 73%, primarily due to higher depreciation and amortization, higher restructuring, acquisition and other costs, primarily associated with Shaw acquisition- and integration-related activities, and higher finance costs. Despite this, the company’s adjusted net income increased by 17%, primarily due to higher adjusted EBITDA, to $544 million.
“We delivered strong results in the second quarter and continued to demonstrate solid momentum in our core businesses,” said Tony Staffieri, President and CEO, in a statement. “We upgraded our financial guidance for the year and I am pleased to share the integration with Shaw is tracking ahead of plan. We’re proud that more Canadians continue to choose Rogers as we invest in our customers and our networks to deliver long-term growth.”
Rogers says it is confident about the future, reaffirming its guidance of realizing at least $200 million of cost savings in 2023, and annualized cost savings of at least $600 million by the end of Q1 2024. The company also increased its 2023 free cash flow outlook to between $2.2 billion and $2.5 billion, up from the previous $2.0 billion to $2.2 billion outlook.